news By Tom Larson
Sun Tribune
The DENCO ethanol plant in Morris will cease operations temporarily, its general manager said Monday.
DENCO's Gerald Bachmeier said the company stopped taking corn deliveries on Monday and that the plant would close "until the economics change."
DENCO will be suspending...
Morris, 56267

Morris Minnesota 607 Pacific Avenue 56267

2013-01-28 11:51:48

By Tom Larson

Sun Tribune

The DENCO ethanol plant in Morris will cease operations temporarily, its general manager said Monday.

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DENCO's Gerald Bachmeier said the company stopped taking corn deliveries on Monday and that the plant would close "until the economics change."

DENCO will be suspending production due to the current challenging economics prevailing in the ethanol industry, Bachmeier said.

"The decision was made to ensure that DENCO can preserve available liquidity," Bachmeier said. "We do not see a lot of merit in running the plant in an environment where negative margins would simply have us eroding our available capital. By taking this action we are looking to ensure that we can meet all of our commitments to our vendors, lenders and employees and will be positioning the facility so that we are able to recommence operations once profitability returns to the ethanol business."

DENCO produces about 25 million gallons of ethanol per year and employs about 38 people. Key operations personnel will be kept on the job and about 25 workers will be laid off.